Question

If government officials are calculating the amount of money the federal government borrows for one fiscal year, they are _____.

Answer 1

Answer: Calculating a budget deficit.

While the budget deficit is the amount of money the government borrows for one budget, national debt is the total amount of money the government owes to bondholders.

Answer 2

If government officials are calculating the amount of money the federal government borrows for one fiscal year, they are calculating a budget deficit.

A budget deficit occurs when expenses exceed revenue. They help indicate the financial health of a country. Multiple budget deficits result in national debt.